Gold News: Gold’s Safe Haven Status Continues Under Tension

Gold News

In the latest gold news: As of September 25 at 13:33pm EST, gold was trading at $1308.73 per ounce, easing off what had been a year high price for gold earlier in the week. At approximately this time last week, gold was trading at $1308.88 per ounce.

Despite becoming partially habituated to the constant background tension between America and North Korea, gold prices still react to the more drastic interactions between the two. Investors saw no reaction to recent minor discussions between the United States and North Korea, however, having become well established as a safe haven investment upon which to hedge bets, gold saw a sudden spike in a recent altercation between the two countries. North Korean Foreign Minister Ri Yong Ho recently told media sources that President Trump’s recent tweet about how Kim Jong Un “won’t be around much longer” was being considered a declaration of war. Foreign Minister Ri Yong Ho further stated that this gave North Korea the right to strike back at America. This caused gold prices to spike in the short term, as investors sought safety in the precious metal instead of remaining tied down to the dollar.

The key to this interaction, however, can be seen in the examination of previous occurrences of similar nature. Investors are continually reacting to North Korean actions, but the price of gold still settles in the longer term after the impact of the statement has worn off. Hence, although this gives gold a somewhat chaotic nature in a short time span, in the near future it is fairly stable. Investors remain wary, however, that eventually North Korea will make good on its threats, causing gold prices to spike as the dollar is abandoned.

This sentiment remains prevalent and is causing the bullion to oscillate. In the 90-day gold prediction ending September 16, I Know First’s algorithm based on a stock prediction algorithm showed an impressive 100% accuracy rate, as seen in “Gold Price Predictions Based on Deep Learning: Returns up to 5.24% in 3 Months.” After a month, I Know First’s average percent change came out to 5.22% with XAU as the top earner, bringing in an impressive 5.24% return to investors.